Betfair 'on target' to revive ailing fortunes
BETFAIR, the gambling firm headed by former Paddy Power executive Breon Corcoran, said it is on target to deliver full-year expectations as it continues a major revamp aimed at restoring its fortunes.
The company said that total revenue slumped 13pc to £90.4m (€106.9m) in the quarter to the end of July, reflecting Betfair's exit from what it had deemed were unsustainable markets. But even in its so-called sustainable markets, which includes Ireland, the UK, Denmark, Malta, Gibraltar and the US, revenue was 7pc lower at £69.9m.
Underlying earnings before interest, tax, depreciation and amortisation rose 16pc in the quarter to £24.9m, spurred by cost savings and lower marketing costs following last year's Euro 2012 tournament. The company has also axed about 500 workers from a peak payroll of 2,300.
It said that it was up against strong comparatives from the first quarter in its last financial year, when it benefited from Euro 2012 and revenue from markets it has now exited or where it has reduced product offerings.
Its gaming revenue was down 31pc to £13.7m, driven by sharp declines in global markets and ongoing poor poker performance, the company added.